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Service Design Basics –from System to Business Modeling                    Dr. Stephen K. Kwan                  Professor,...
AbstractThis presentation looks at service design from amodeling perspective that incorporates systemthinking, design thin...
Some DefinitionsService Science is short for ServiceScience, Management, Engineering and Design (SSMED1).Service Science i...
Service System Worldview1                                                                 Service             Customer    ...
A Service System Network        Service   Service Interactions       System A                                  Service    ...
Service System Worldview                                 Employees &                                 Stockholders Communit...
Value Co-Creation Through Value Propositions                                 Employees & Value                            ...
Service System Worldview       Service Management   Fitzsimmons & Fitzsimmons               Employees &                   ...
Service Systems, Computing, and IT Services1                  Service Provider’s Back Stage Support                       ...
Service System Design (1)From:                   To:                                Service        Customer               ...
Service System Design (2)            System               Design       Business            Thinking            Thinking   ...
Design Thinking – some sourcesStickhorn& Schneider                         Kwan 2011           12
Business ModelOsterwalder&Pigneur                           Kwan 2011   13
Stages in Customer Empowerment                  in Value Co-Creation                                       Stage 1: Value ...
Stage 2: Traditional Service Value Network                         Value Proposition                               Focal  ...
Stage 3 – Improved Value Chain                         Value Proposition                               Focal             S...
Stage 4: Customer Driven Service Value                     Network                    Value Proposition                   ...
Variety of Value Propositions                                                                    Maslow’s                 ...
Disposable             Income &             Desire for              Services              Needs               vs.         ...
Value Propositions can also be bi-directionalCustomers                      Service Provider                              ...
Value Proposition Model (VPM)                           Starting with the Service System                                  ...
VPM – a common example                                               Service       Customer        Value Proposition      ...
VPM – individuals and community                                                    Service       Customer             Valu...
VPM – individuals and Facebook community                                                    Service       Customer        ...
VPM – service provider partners                                             Service   Customer                            ...
VPM – partner’s acquistion of customer                                                       Service             Customer ...
Example 1 of 4                                               Service   Customer                                    Provide...
Example 2 of 4                                                            Service                Customer                 ...
Example 3 of 4                                                            Service                Customer                 ...
Example 4 of 4                                                         Service             Customer                       ...
Foundational Premises of Service Dominant Logic                  Kwan &Müller-Gorchs 2011        31
Value Systems and Value Dimensions                                          Provider’s Value System                       ...
Variety of Value Propositions                                                                           Maslow’s          ...
Constructing a Value Proposition  The Customerhave a lot of VP’s to choose from                                   VP Serv...
A Customer’s Choice of ServiceA Service Provider’s Promised Value:                                                 Based o...
A Customer’s Realization of ValueA Customer’s Realized Value:                                                Co-Production...
Constructing Value Propositions:          Customers and Service Providers                                                 ...
Example: E-CommerceCustomer            Amazon.com                                               Bookcloseout_us           ...
VP0           Se0                 SE0                                              Amazon.com                 S0          ...
Service Pattern 1 – Single Service Episode                          Customer                         Instantiation        ...
Pattern 2 – Continuous Service over a Period of Time                        Customer                                      ...
Service Pattern 3 – Service in Parallel                           Customer                                                ...
Pattern 3 – Continuous Service with      Occasional Service Episodes  Customer                                            ...
Pattern 4 – Service provided by more than      one Partner Service ProvidersCustomer                                      ...
Future Directions• More on development of Value Dimensions and Measurement• More on connecting VPM with Service Provider’s...
Service System Framework  & Service System Networks                                                 Foresight and Innovati...
Foresight and Innovation Method           © Cockayne and Carleton                                                    Proce...
Service Design Basics –from System to Business Modeling                    Dr. Stephen K. Kwan                  Professor,...
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Japan Institute for Design Promotion, December 21st, 2011, Tokyo, Japan.

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Japan Institute for Design Promotion, December 21st, 2011, Tokyo, Japan.

  1. 1. Service Design Basics –from System to Business Modeling Dr. Stephen K. Kwan Professor, Service Science Management Information Systems College of Business Administration San José State University, CA, USA http://www.sjsu.edu/ssme Contact: stephen.kwan@sjsu.eduPresented at the Japan Institute of Design Promotion (JIDP) December 21st, 2011, Tokyo, Japan Download these slides at: http://www.slideshare.net/StephenKwan
  2. 2. AbstractThis presentation looks at service design from amodeling perspective that incorporates systemthinking, design thinking, and business thinking. Thisapproach provides an avenue of integration acrossdifferent disciplines and roles in the service designprocess. A desirable outcome of this integration wouldbe more effective information and knowledgemanagement from design to engineering of servicesystems. 2
  3. 3. Some DefinitionsService Science is short for ServiceScience, Management, Engineering and Design (SSMED1).Service Science is concerned with the study of Service Systems. cf. Computer Science is concerned with the study of Computer Systems.Service Systems are man-made complex systems designed toimprove the quality of life by co-creating value through valuepropositions among the stake-holders. 1 Spohrer, J., Kwan, S.K. “Service Science, Management, Engineering, and Design (SSMED): An Emerging Discipline – Outline and References”, International Journal of Information Systems in the Service Sector, 1(3), 2009. Kwan 2011 3
  4. 4. Service System Worldview1 Service Customer Provider Service Experience A Service System and Its Entities1Kwan, S. K. & Min, J. H. (2008) “An Evolutionary Framework of Service Systems”.Presented at the International Conference on Service Science, Beijing, China, April 17-18. Kwan 2011 4
  5. 5. A Service System Network Service Service Interactions System A Service System B Service ServiceSystem E System C Service System D Service System F Kwan 2011 5
  6. 6. Service System Worldview Employees & Stockholders Community Service Customer Provider Service Partners Experience Service System CompetitionSociety Kwan 2011 6
  7. 7. Value Co-Creation Through Value Propositions Employees & Value Stockholders Community Value Service Value Customer Provider Value Service Partners Experience Service System Competition Society Kwan 2011 7
  8. 8. Service System Worldview Service Management Fitzsimmons & Fitzsimmons Employees & Capacity Stockholders & Manpower Planning, Community Training Service Customer Facility Location Provider & Design Service Partners Experience SocialNetworking Competition Competitive Market Customer Service StrategySociety Segmentation Flow & Concept Operating Service Realized Strategy Delivery Kwan 2011 8
  9. 9. Service Systems, Computing, and IT Services1 Service Provider’s Back Stage Support Back Stage Processes Information Technology Platform Front StageFront Stage Processes ITSM – Management of the Processes Service Computing and Infrastructure of IT Services (e.g., SOA) 1 Kwan, S. K. & Hefley, B., “Service Systems”, 2008. Kwan 2011 9
  10. 10. Service System Design (1)From: To: Service Customer System Design Service System Engineering Kwan 2011 10
  11. 11. Service System Design (2) System Design Business Thinking Thinking Thinking A Multi-disciplinary Approach ServiceCustomer System Design Service System Engineering Knowledge Management – maintaining integrity of information and knowledge throughout the lifecycle Kwan 2011 11
  12. 12. Design Thinking – some sourcesStickhorn& Schneider Kwan 2011 12
  13. 13. Business ModelOsterwalder&Pigneur Kwan 2011 13
  14. 14. Stages in Customer Empowerment in Value Co-Creation Stage 1: Value Chain Value Proposition Focal Service Customer Relationship Provider Service Experience5Kwan, S. K. & Yuan, S. T. ”Customer-Driven Value Co-Creation in Service Networks”, to appear inDemirkan, H., Spohrer, J.C. and Krishna, V. ed., The Science of Service Systems, volume in Service Science: Researchand Innovation (SSRI) in the Service Economy series, Springer, 2010. Kwan 2011 14
  15. 15. Stage 2: Traditional Service Value Network Value Proposition Focal Service Customer Relationship Provider Provider Service Partner Experience Network Value Proposition Kwan 2011 15
  16. 16. Stage 3 – Improved Value Chain Value Proposition Focal Service Customer Relationship Provider ValueProposition Service Customer’s Experience Social Network Kwan 2011
  17. 17. Stage 4: Customer Driven Service Value Network Value Proposition Focal Service Customer Relationship Provider Value Value PropositionProposition Provider Service Partner Customer’s Experience Social Network Network Kwan 2011
  18. 18. Variety of Value Propositions Maslow’s Hierarchy Of Needs Service Provider Society HedonicStakeholders Spiritual Cultural Community Corporal Emotional Employees Intellectual Familial…. Stockholders A point in this 3-D space is Partners a Potential Value Customers Proposition Kwan 2011 18
  19. 19. Disposable Income & Desire for Services Needs vs. WantsKwan 2011 19
  20. 20. Value Propositions can also be bi-directionalCustomers Service Provider Stockholders Partners Community Employees Customers Partners Service Provider Society Service Provider Society ? Community Employees Stockholders Partners Customers Kwan 2011 20
  21. 21. Value Proposition Model (VPM) Starting with the Service System Service Customer Provider Service ExperienceKwan, S.K., Müller-Gorchs, M. (2011). "Constructing Effective Value Propositions for Stakeholdersin Service System Networks," Proceedings > Proceedings of SIGSVC Workshop . Sprouts:Working Papers on Information Systems, 11(160). http://sprouts.aisnet.org/11-160 Kwan &Müller-Gorchs 2011 21
  22. 22. VPM – a common example Service Customer Value Proposition Provider Customer Service Experience ServiceCustomer Experience Service Experience Kwan &Müller-Gorchs 2011 22
  23. 23. VPM – individuals and community Service Customer Value Proposition Provider Community/ SocialCustomer Network A Shared Experience Service Experience Service ExperienceCustomer Service Experience Kwan &Müller-Gorchs 2011 23
  24. 24. VPM – individuals and Facebook community Service Customer Value Proposition Provider Community/ SocialCustomer Network A Shared Experience Service Experience Service ExperienceCustomer Service Experience Kwan &Müller-Gorchs 2011 24
  25. 25. VPM – service provider partners Service Customer Provider Value PropositionCustomer Service Service Experience Experience Service Experience Service Experience Value Proposition Vendor Kwan &Müller-Gorchs 2011 25
  26. 26. VPM – partner’s acquistion of customer Service Customer Provider Customer Service Service Experience Experience Service Experience Service Experience Service VendorExperience Kwan &Müller-Gorchs 2011 26
  27. 27. Example 1 of 4 Service Customer ProviderCustomer Service Service Experience Experience Service Experience Service Experience Vendor Kwan &Müller-Gorchs 2011 27
  28. 28. Example 2 of 4 Service Customer Provider Customer Service Service Experience Experience Service Service Experience ServiceExperience Experience Service Vendor Vendor Experience Kwan &Müller-Gorchs 2011 28
  29. 29. Example 3 of 4 Service Customer Provider Customer Service Service Experience Experience Service Service Experience ServiceExperience Experience Service Vendor Vendor Experience Kwan &Müller-Gorchs 2011 29
  30. 30. Example 4 of 4 Service Customer Provider Customer Service Service Experience Experience Service Experience Service Experience Service VendorExperience Kwan &Müller-Gorchs 2011 30
  31. 31. Foundational Premises of Service Dominant Logic Kwan &Müller-Gorchs 2011 31
  32. 32. Value Systems and Value Dimensions Provider’s Value System             Opportunities for   Value Co-Creation  Customer’s ★ Value System ★ ★ ★ ★ ★ ★ ★His Customer’s Value System FP8 Kwan &Müller-Gorchs 2011 32
  33. 33. Variety of Value Propositions Maslow’s Hierarchy Of Needs Service Provider Society HedonicStakeholders Spiritual Cultural Community Corporal Emotional Employees Intellectual Familial…. Stockholders A point in this 3-D space is Partners a Potential Value Customers Proposition FP10 Kwan &Müller-Gorchs 2011 33
  34. 34. Constructing a Value Proposition The Customerhave a lot of VP’s to choose from VP Service Level Agreement? FP7 Kwan &Müller-Gorchs 2011 34
  35. 35. A Customer’s Choice of ServiceA Service Provider’s Promised Value: Based on the Customer’s ownA Customer’ Choice Function: expectations Kwan &Müller-Gorchs 2011 35
  36. 36. A Customer’s Realization of ValueA Customer’s Realized Value: Co-Production Service Process Co-Creation of Value FP6 An Example Service Provider and Customer’s His Partners’ Contributions Contributions FP9 Kwan &Müller-Gorchs 2011 36
  37. 37. Constructing Value Propositions: Customers and Service Providers Sc,R,M too Connecting Components of a ValueProposition to a Service Provider’s KPI’s through Feedback Kwan &Müller-Gorchs 2011 37
  38. 38. Example: E-CommerceCustomer Amazon.com Bookcloseout_us theBookGrinder nengland4 Kwan &Müller-Gorchs 2011 38
  39. 39. VP0 Se0 SE0 Amazon.com S0 SP0 Se1 Bookcloseout_us S1 SP1 S4 SP4Customer Se2 theBookGrinder S2 SP2 S5 Se3 negland4 S3 SP3 S6 Kwan &Müller-Gorchs 2011 39
  40. 40. Service Pattern 1 – Single Service Episode Customer Instantiation of the Service Experience at a particular point VP0 In time SE0 Focal Relationship Time SP0 SE0 = Service Experience provided by SP0 SP0 = Service Provider of the Focal Relationship (the basis of the Value Proposition from Kwan & Yuan 2011) VP0 = Value Proposition offered by SP0 to Customer for SE0 Kwan &Müller-Gorchs 2011 40
  41. 41. Pattern 2 – Continuous Service over a Period of Time Customer VP0 SE0 Time SP0 Kwan &Müller-Gorchs 2011 41
  42. 42. Service Pattern 3 – Service in Parallel Customer VP0 SE0 Se0 Se1 Se2 Time Instantiation of the ServiceSP0 SP1 SP2 Experience at a particular point In time Kwan &Müller-Gorchs 2011 42
  43. 43. Pattern 3 – Continuous Service with Occasional Service Episodes Customer VP0SE0 Se1 Se2 Se0 Time SP0 Kwan &Müller-Gorchs 2011 43
  44. 44. Pattern 4 – Service provided by more than one Partner Service ProvidersCustomer VP0 SE1 SE2 SE3 SE0 Time SP0 SP1 SP2 SP3 VP1 VP3 SE4 SE6 VP2 SE5 Kwan &Müller-Gorchs 2011 44
  45. 45. Future Directions• More on development of Value Dimensions and Measurement• More on connecting VPM with Service Provider’s KPI• More on Quality Dimensions and Measurement• Integrate VPM with Service System Design and Prototyping Integrate with Foresight and Innovation Method Knowledge Managementfor Service System Design & Engineering © Cockayne and Carleton Kwan 2011 45
  46. 46. Service System Framework & Service System Networks Foresight and Innovation MethodBusiness Model, Value Propositions & Service Patterns © Cockayne and Carleton Kwan 2011 46
  47. 47. Foresight and Innovation Method © Cockayne and Carleton Process Chain Network Diagram UI Prototyping UML – Use Cases BPMN Work System Looking for the right MANGA tools to Service Blueprint connect to Story the next Boards stage Kwan & Müller-Gorchs 2011 &Müller-Gorchs 47
  48. 48. Service Design Basics –from System to Business Modeling Dr. Stephen K. Kwan Professor, Service Science Management Information Systems College of Business Administration San José State University, CA, USA http://www.sjsu.edu/ssme Contact: stephen.kwan@sjsu.edu FinPresented at the Japan Institute of Design Promotion (JIDP) December 21st, 2011, Tokyo, Japan Download these slides at: http://www.slideshare.net/StephenKwan

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